What Every End-User Needs to Know About the ISDA August 2012 Dodd-Frank Protocol

Eileen Bannon is a Partner in our New York office

Overview

Prior to October 15, 2012, all counterparties under existing ISDA Master Agreements or other swap agreements with swap dealers will be required to supplement such swap agreements so that the swap dealers can comply with certain requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Act" or "Dodd-Frank"). If a counterparty does not effect such supplement, the swap dealer will no longer be legally permitted to effect new trades under the swap agreement or enter into modifications of the swap agreement. ISDA has prepared a protocol which will be the mechanism preferred by swap dealers to effect supplements to existing swap documents. This alert is designed to provide guidance as to the process, background and substance of the ISDA protocol.